In an increasingly uncertain economic environment where risks evolve rapidly, Spain’s small and midsize businesses face a critical challenge: the insurance protection gap. According to Hiscox’s Gap Report 2025, seven in ten SMBs in Spain lack adequate insurance or hold policies that do not reflect the real risks of their operations, a shortcoming that jeopardizes both their financial stability and their long-term resilience.
Against this backdrop, Hiscox emphasizes the importance of shifting from a reactive view of insurance to a proactive, preventive strategy, and recommends that Spanish SMBs adopt the following measures to narrow their protection gap:
– Exhaustive risk identification: Given the complex environment in which SMBs operate, it is essential to conduct a comprehensive risk assessment that covers operational, financial, legal, reputational, and cyber risks. Risk audits, formally documented risk management plans, and contingency protocols emerge as strategic tools aimed at significantly improving incident response capabilities and minimizing financial and reputational impact.
– Periodic review of insurance needs: The business is constantly evolving, and existing coverages can become obsolete. In the cited report, 30% of Spanish SMBs have not renewed their Professional Liability (E&O) policy in the last three years, and 26% have not renewed their General Liability policy. For this reason, it is advisable to review policies annually or even sooner if there are revenue, headcount, or operational increases exceeding 20%. This analysis helps prevent underinsurance, removes unnecessary coverages, and adjusts indemnity limits to ensure they are sufficient to cover potential claims or unexpected legal costs.
– Constant monitoring of sector trends and emerging risks: Risk exposure is not isolated but shared across the business community when facing similar challenges. Participating in professional forums, staying informed about regulatory changes, and consulting reliable advisory sources enable firms to anticipate threats, share best practices, and tailor insurance policies before contingencies arise.
– Alignment of insurance with the real business model: A common mistake is purchasing “standard” policies without analyzing whether they truly fit a company’s operations. Coverages should be tailored to specific activities such as e-commerce, remote work, subcontracting, professional services, or international expansion to ensure protection that is proportional to the actual risks faced by the business.
– Specialized guidance: Insurance should be a strategic tool, not a routine administrative task. With the backing of brokers or specialized insurers, companies can better understand exclusions, limits, and critical coverages, and design customized solutions according to size, sector, and risk profile. This approach supports informed decision-making and the efficient allocation of resources toward business protection.
